Vanguard to Expand Admiral Shares

A total of 75 funds will now offer Admiral Shares; the six additions will feature expense ratios ranging from 0.10% to 0.21:

Fund

Admiral Shares estimated expense ratio

Vanguard FTSE All World Ex-US Index Fund

0.18%

Vanguard Mid-Cap Growth Index Fund

0.10%

Vanguard Small-Cap Growth Index Fund

0.10%

Vanguard Mid-Cap Value Index Fund

0.10%

Vanguard Small-Cap Value Index Fund

0.21%

Vanguard Developed Markets Index Fund

0.12%

The new shares are expected to be available for sale in late September after the standard SEC review period.

Retail clients will be able to convert their qualifying shares
into the lower-priced shares of the equivalent fund at that time;
otherwise, Vanguard will automatically convert qualifying accounts over
the next several months. Share conversions within the same fund are
tax-free.

Vanguard introduced Admiral Shares in November 2000 to recognize and
encourage the cost savings associated with large and long-tenured
accounts by passing along these savings to shareholders in the form of
lower fund expense ratios. Roughly $520 billion, nearly one-third of
Vanguard’s total fund assets, is held in Admiral Shares.

Institutional Plus shares are also
expected to become available for Vanguard Intermediate-Term Bond Index
Fund and Vanguard Long-Term Bond Index Fund. The expense ratios are
expected to be 0.05% for the new Institutional Plus Shares of these
three funds and 0.07% for the new Institutional Shares in the Short-Term
Bond Index Fund.